Breach of Contract

S

sunnyd1216

New Member
I recently placed a used car on craigslist. The buyer came and test drove the car, wrote a check for the amount, and I signed over the title. The next day he called to say he canceled the check and didn't want the car because a mechanic told him it was dangerous to drive. I told him it had been driving just fine as well as when he test drove it and drove it 50+ miles back to where he lived. Also that I sold it "as is". I told him he had 5 business days to make good on the check or I would take it to small claims court. A few days later I received a letter from his attorney stating that I must come pick up the car because I would not win in small claims court due to there being a "Prior Salvage Title". Would I still be able to win my case in court?
 
sunnyd1216 said:
I recently placed a used car on craigslist. The buyer came and test drove the car, wrote a check for the amount, and I signed over the title. The next day he called to say he canceled the check and didn't want the car because a mechanic told him it was dangerous to drive. I told him it had been driving just fine as well as when he test drove it and drove it 50+ miles back to where he lived. Also that I sold it "as is". I told him he had 5 business days to make good on the check or I would take it to small claims court. A few days later I received a letter from his attorney stating that I must come pick up the car because I would not win in small claims court due to there being a "Prior Salvage Title". Would I still be able to win my case in court?
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I suggest you simply go and retrieve your car.
"As-Is" doesn't mean you can sell a car that had been salvaged without revealing the truth.

A motor vehicle must be given a title with the brand "salvage" on it in Iowa, and it may not be registered until it has bene made "road worthy".
If the vehicle has a "salvage-labeled" title, Iowa will never issue it a "clean" title―only a "prior salvage" title.
Such a title will only issue if the vehicle is repaired to be street worthy (at which point, a person can register the vehicle).

I think the lawyer is referencing the "damage disclosure law" that requires a seller of a vehicle that has had over 50% of damage (that includes a "salvage" vehicle title) to make known to the buyer the TRUE past condition of the vehicle.

Here's the law broken down:
Damage must be disclosed if it exceeds 50 percent of the fair market value of the motor vehicle before it became damaged. The amount of damage shall be based on estimates of the RETAIL cost of repairing the vehicle, including labor, parts and other materials if the vehicle has not been repaired; or on the ACTUAL RETAIL cost to repair, including labor, parts and other materials if the vehicle has been repaired. All repair charges, including sales tax, must be included.

As a seller you were required to provide a separate damage disclosure statement to the buyer at or before the time of sale of the vehicle.

I strongly urge you to just go get your vehicle and hope the guy doesn't (or hasn't already) file(d) a complaint with the state of Iowa, DMV.

I also suggest you don't do this again, sell 'salvaged" junk vehicles the way you did this sale.
If you've previously engaged in this practice, keep it up, it'll come back to haunt you.

I graduated from one of Iowa's two law schools (at the time), and Iowa had always aggressively and stringently enforced laws such as this.


http://www.iowadot.gov/mvd/ovs/selling.htm
 
If it can't be registered, how could I have gotten registration/plates. The DMV never said anything about a problem. I didn't even realize it was a "Prior Salvage Title". He never mentioned anything about this until now. His original reason for not wanting the car, was he didn't want to make repairs. I thought that once you took the title and car the sale is as is and final? Does this make any difference?
 
This was a car my niece drove while in college with no accidents. How could I have known the cars history? I also know nothing about mechanics and had no idea of any problems with the title or the car itself?
 
sunnyd1216 said:
This was a car my niece drove while in college with no accidents. How could I have known the cars history? I also know nothing about mechanics and had no idea of any problems with the title or the car itself?
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You need not argue your case to me. If you believe selling a piece of junk salvage car was okay, why ask the question?

As-is cuts two ways. The law gave you a duty to disclose. You failed to disclose, accorDing to the buyer. Expect to be sued, or maybe criminally charged.

Most people don't hire lawyers, your mark hired a lawyer.
He might be smarter than you think.

You effectively gave away your car, as the buyer stopped payment.
So, do whatever you want to do.
What they might do to you, certainly will have NO impact on me.
Have a nice day now.
 
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Used car sales normally are sold as is, however as said, you are required to disclose the fact that the title is branded "salvage." It can be registered but it will always carry the salvage label. There is no way your buyer would know that it was a salvage vehicle until they received the title. You stating that you did not know, does not absolve you. It is in fact a salvage vehicle and you must disclose that to a buyer. Go get your car back.
 
Okay so I looked up some things regarding salvaged vehicles. "Prior Salvage" title-the vehicle is repaired to street worthiness (at which point it can be registered). I didn't own the car when it was a salvage. When I made the purchase it apparently was repaired and re-titled before I got it.
 
You have a legal obligation to disclose it to him specifically, and probably in writing(state law may vary). Not just here's the title and he should notice. You would have had to tell him before you got to the point of turning over the title. Call your local DMV and let them tell you since you seem to be disinclined to believe what you're being told here.
 
Okay, I just spoke with the Iowa DMV. I was told I did not have to legally have a Damage Disclosure Statement due to the vehicle being 17 years old.
 

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